In the deafening roar of AI hype, it’s easy for founders to feel like they’ve already missed the boat. Michael Greenberg, founder of 3rd Brain Digital Operations and author of The Digital Operations Playbook, is here to tell you that’s not true—but you can’t start with the shiny new tools. You must fix the foundation first. In this episode, Michael dismantles the myth of overnight AI success, revealing why you can't automate chaos and why most businesses are dangerously unprepared for the future. Get ready to learn the three-part framework for true digital transformation.

💡 Unlocking the Playbook

You Can't Automate Chaos: Before you can even think about AI, you need a solid foundation. Michael explains that if your processes are chaotic and your data lacks a single source of truth, AI will only amplify the dysfunction. This is especially true for SMBs, which have too many unique nuances and exceptions—like the client who pays in cash and golf pro shop credits—to rely on rigid, cookie-cutter automation. Master the process by hand first; you can't use a chainsaw if you can't swing an axe.

People, Process, Tools—In That Order: The only way to achieve successful digital transformation is by following a strict sequence. Start by getting your people on board, ensuring they feel heard and understand the "why" behind the change. Once you have buy-in, you can map out and refine the process of how they actually do the work. Only then should you introduce tools that are specifically chosen to fit the needs of your people and your process. Starting with tools is a massive red flag.

How to Vet an "AI Agency": With a flood of new "AI experts" on the market, it's critical to know who to trust. Michael provides a simple vetting process: be wary of anyone calling themselves an "AI agency," especially dev shops that have simply pivoted their branding. A real partner will have their own standardized methodologies, a trained team, and—most importantly—their own internal AI tools that they use to run their business. If they aren't using AI to improve their own operations, they can't help you with yours.

🤫 Part 1's Playbook Secret (The official No Trade Secret drops in PART TWO, but here is the hidden secret of PART ONE!)

The adoption of new technology in an established organization spreads more like a virus than a commandment. Instead of forcing change from the top down, which creates resistance, find a champion within a team or department. Get them started on the new tools and processes. As they start winning and getting recognition for their improved efficiency, the social pressure will build, and others will naturally want to get on board.

🗣️ Words to Build On

"You can't use a chainsaw if you can't swing an axe." – Michael Greenberg

"If you're hiring an AI consultant or an AI agency and they have no internal AI tools that they actually use, Huge red flag to me." – Michael Greenberg

"That sort of adoption of new technology spreads more like a virus than it does like a commandment. You've got to get it bubbling up inside the org and then watch how people adapt to it." – Michael Greenberg

👤 About Michael

Michael is the founder and Chief Architect of 3rd Brain Digital Operations, where he leads transformations that move clients from spreadsheet sprawl to unified workflows and automation. His work and case studies inform the book’s playbook-style guidance and give operators a shared language, and a clear path to reach Level 3 and beyond.

Author of Digital Operations Playbook: AI Readiness for SMBs, a practical roadmap that helps small and mid-sized businesses build the operational foundation needed to plug in automation and AI, without chaos. The book shows leaders exactly where they are today and what has to happen next to move from “paper to AI.”

Drawing on the book’s core frameworks, the 5 Levels of Digital Operations, the 3 Cs (Consistency → Clarity → Capacity), and the Pillars of Digital Operations, Michael translates tech trends into step-by-step execution. His approach focuses on sequencing change (people → process → tools) so teams standardize work, unify data, and then automate safely, unlocking capacity with measurable results.

🔗 Links & Resources

• Connect with Michael on LinkedIn
• Visit the 3rd Brain website
• Check out The Digital Operations Playbook: AI Readiness for SMBs on Amazon

🎧 Make sure to listen to Part 2 to hear Michael Greenberg’s ultimate "No Trade Secret"

In the race to adopt AI, most founders are making a critical mistake: waiting for stability or for a perfect understanding before they even start. In this solo reflection, Jarome McKenzie dismantles this fallacy, arguing that the greatest competitive advantage isn't technical expertise—it's the willingness to play. He reveals that the feeling of "being behind" is an illusion, and the only way to grasp the power of this new technology is to abandon the need for mastery and embrace the posture of a curious beginner. This episode isn't about prompts or hacks; it's about the fundamental mindset shift required to build with, and not just consume, the most transformative tools of our time.

✨ Why This Matters for You

This episode provides the mental model needed to move from an observer to an active builder in the age of AI. You will learn how to:

• Reframe the overwhelming AI landscape from a source of scarcity and fear into a playground for innovation and opportunity.
• Recognize that the true barrier to entry isn't technical skill but the psychological hurdle of embracing a beginner's mindset.
• Understand the pathway from simple experimentation to building bespoke internal systems that cut costs and are perfectly tailored to your team's needs.

📝 Key Takeaways

• The Fallacy of Understanding Before Using: The single biggest mistake is believing you need to comprehend AI before you start. True understanding is an emergent property of using it—through experimentation, testing its limits, and learning how to ask better questions through direct interaction.
• The Willingness Moat: In this new era, the competitive advantage is not a technical one. It's a psychological one. The moat is your willingness to start, play, and learn through doing, giving you an inherent edge over those waiting for the landscape to "settle down."
• From Consumer to Creator: The journey with AI begins with simple tasks, but the real power is unlocked when you progress from using it as a "glorified search engine" to building your own custom internal tools. This allows you to create superior, cost-effective solutions that are perfectly aligned with your unique workflows.
• The Myth of "Being Behind": The perception that everyone else is an AI expert is a distortion created by social media. The data shows that the vast majority of people have minimal to no experience with these tools, meaning the bar for getting started is incredibly low.

🚀 Put It Into Action

• Become a Thought Partner: This week, use a free AI tool (like ChatGPT or Claude) for a low-stakes "thought partnership" task. Ask it to summarize a long article you've been meaning to read, role-play a difficult conversation, or help you brainstorm solutions to a nagging operational problem. The goal is simply to interact and observe its response.
• Systematize Your Logic: Take a transcript from a recent call (sales, client check-in, etc.) and feed it into an AI. Instead of a generic prompt, explicitly state your own analysis logic (e.g., "When I review this, I look for [X], then I listen for [Y] to decide on [Z]"). Ask it to apply your framework to create a summary, draft a proposal, or identify key action items.
• Embrace the Beginner: Acknowledge that feeling like a beginner is a prerequisite for mastery. Schedule 15-30 minutes of unstructured "play time" with an AI tool this week. Don't try to solve a problem—just experiment with different inputs, see how it breaks, and get comfortable with not knowing the answer.

🔗 Stay Connected

• Subscribe to the No Trade Secrets podcast so you never miss an episode.
• Connect with Jarome on LinkedIn: linkedin.com/in/jarome-mckenzie-778177187
• Share this episode with a fellow founder who is building with intention.

Welcome back to the powerful conclusion with Dylan Hendrickson, the former college athlete turned accounting firm founder. In PART ONE and TWO, we explored the intense discipline required to build a business from the ground up while still competing on the football field. In PART THREE, we pivot from the foundation to the future, diving into how leadership evolves when the stakes become deeply personal. How does becoming a new father completely rewire your relationship with ambition? What's the secret to finding a business partner that elevates you without blurring professional lines? And how can one simple mindset shift about what you "tolerate" change every outcome in your life?

⏮️ Catch Up on Previous Parts

💡 Unlocking the Playbook

The Non-Best Friend Partnership: Dylan found his business partner in a coaching program, and they merged firms after just a few months. The partnership thrives not because they are best friends, but because they have complementary skill sets, shared core values from their athletic backgrounds, and enough professional distance to hold each other to a high standard. This dynamic allows them to divide and conquer efficiently while avoiding the conflicts that can arise from partnering with close friends or family.

The New Dad Efficiency Mandate: Becoming a father was a forced function for hyper-efficiency. Dylan shifted from working scattered 12-14 hour days to highly focused, locked-in 6-8 hour work blocks. The desire to be present with his wife and newborn daughter created a non-negotiable deadline each day, forcing him to eliminate distractions and get more done in less time, ultimately improving both his work and home life.

Climbing New Mountains from a Place of Gratitude: Dylan lives in a state of dynamic tension between profound gratitude and relentless ambition. He recognizes he is "currently in the good old days" with a beautiful family and a stable life, yet he simultaneously pushes for more by giving himself "new mountains to climb." This mindset prevents complacency by framing future goals—like funding family trips or building a cabin—as the next worthy challenge, ensuring he continues to grow from a place of abundance, not scarcity.

🤫 The No Trade Secret

You will get what you tolerate. This applies to every aspect of your life—as a parent, a business owner, a leader, and a spouse. If there's something in your life you don't like, whether it's how someone speaks to you, an employee's performance, or a dynamic in a relationship, it will continue to happen precisely because you are tolerating it. If you want to change the outcome, you must stop tolerating the behavior.

🗣️ Words to Build On

"I try to be very aware that I am currently in the good old days." – Dylan Hendrickson

"I want my kids to look at me and my wife and think, yeah, like they are worth listening to and like, I do look up to them... I don't think as many parents command that as much as they wish they did." – Dylan Hendrickson

"It's my ethical obligation to make as much money as possible. Cause if I'm making as much money as possible, I'm helping lots of people... somebody has to have the money. I might as well be someone that's going to do good with it." – Dylan Hendrickson

👤 About Dylan Hendrickson

As the co-founder of a fractional CFO and accounting firm, he primarily focuses on sales and marketing. He is based in St. George, Utah, where he lives with his wife and their three-month-old baby. A former Division I football player, he also coaches high school basketball in his spare time.

🔗 Links & Resources

• Connect with Dylan on LinkedIn
• Visit the STAXX website

🎧 Missed the beginning? Go back and catch up on PART ONE and PART TWO